Feb. 19 (Bloomberg) -- Centro Properties Group, facing an April 30 deadline on A$4.9 billion ($4.5 billion) of obligations, dropped by the most in a month of Sydney trading after saying it will increase the amount of its debt classified as short term.
Centro creditors including Commonwealth Bank of Australia and National Australia Bank Ltd. on Feb. 15 gave the Melbourne- based owner of more than 700 U.S. malls more time to refinance debt. The company said the same day that A$1.5 billion of long- term liabilities will be reclassified as short term.
``We believe this, among other missteps and questionable disclosure, highlight the litigation risk Centro or any acquirer will face,'' Merrill Lynch & Co. Sydney-based analysts Juan Sanabria and John P. Kim wrote today in a report. They rate the stock a ``sell.''
The stock fell as much as 17 percent on the Australian Stock Exchange, the most since Jan. 16. Centro traded down 9.5 percent to 57 Australian cents as of 11:26 a.m. in Sydney.
Centro shares have plunged 90 percent since the company said Dec. 17 it was struggling to raise funds amid the global credit squeeze, wiping more than A$4 billion from its market value. That cost former Chief Executive Officer Andrew Scott his job and prompted Centro to seek to sell assets to pay down debt.
Centro faces claims from U.S. bondholders owed $450 million and represented by U.S law firm Bracewell & Giuliani LLP, Evan Flaschen, lead financial restructuring partner at the Houston- based firm, said Jan. 17 the U.S. firm's Australian counsel is Arnold Bloch Leibler.
To contact the reporter on this story: Garfield Reynolds in Sydney at [email protected]
Last Updated: February 18, 2008 19:44 EST
perty group facing a april 30 deadline
Add to My Watchlist
What is My Watchlist?